MORE road accidents have made higher motor insurance premiums inevitable, deputies were told.

The Minister of State for Commerce, Mr Pat Rabbitte, said the number injured in the Christmas period was up by 50 per cent on the previous year, from 120 to 181. In the year October 1995 to October 1996, Garda figures indicated a 6.6 per cent increase in the number of fatalities and injuries, the Minister said.

Guardian PMPA, with 30 per cent of the market, had implemented premium reductions of between 5 and 10 per cent in 1995 and early 1996 but had announced an increase of 5 per cent on average from November last.

The Hibernian Group, with 12 per cent of the market, had recently announced a 4.8 per cent increase in premiums for up to 60 per cent of its customers. ,As part of a rebalancing of its risk portfolio, it would be reducing rates for some categories of mature motorists. Young people named as drivers on family insurance policies would get more favourable rates under its new pricing structure. Customers who had other policies with Hibernian would be offered discounts of up to 10 per cent on their motor insurance.

A 12 per cent rise in the number of claims arising from motor accidents was cited by Hibernian as necessitating the increase in premiums. The company pointed to its experience that the younger male driver posed a bigger risk than older drivers.

Mr Rabbitte was responding at question time to Mr Ned O'Keeffe: (FF, Cork East) who said bad roads were contributing to accidents and claims. He asked what efforts were being made to reduce premiums, particularly for young drivers.

Mr Rabbitte said an expert group was due to report before the end of this month on procedures for dealing with claims and the possibility of a claims tribunal along the lines of the employment appeals tribunal which would be, cheaper and more efficient than the courts.